- MG Motor, a Chinese-British automaker, is reportedly in advanced negotiations to sell its dominant stake in the Indian auto business to Indian partners, with the goal of raising approximately Rs 5000 crore for growth and expansion.
- The company plans to introduce 4-5 new vehicles in the Indian market, with a focus on EVs, and is aiming to “Indianize operations” by diluting majority ownership to financial institutions, partners, and high-net-worth individuals in the country.
According to insiders, SAIC-owned MG Motor in China may be looking to sell its dominant stake in the Indian auto business. According to reports, the Chinese-British automaker is in “advanced negotiations” with a number of interested partners, including Reliance Industries, Hero Group, Premji Invest, and JSW Group, for an equity sale. Although it has not been revealed who of these parties is interested, the corporation has announced that it hopes to finalise the sale by the end of the year.
According to one source familiar with the matter, “hectic discussions are underway with Indian companies, and MG Motor is hoping to close a deal by the end of this year.” According to the source, the talks have evolved to the point where the corporation requires financing almost immediately in order to expand its operations in the country. In the near future, the company intends to grow its manufacturing and activities. “Negotiations are ongoing,” the source added, “and MG management’s effort is to find a credible partner while maintaining attractive valuations.”
The company has revealed plans to sell a majority of its share in the brand to Indian corporations and high-net-worth people across the country in order to earn approximately Rs 5000 crore for growth and expansion. MG Motor India CEO Rajeev Chaba recently revealed to the media that the business aims to “Indianize operation” by diluting the majority ownership to financial institutions, partners, and high-net-worth individuals in the country.
“We intend to Indianize shareholding, the company’s board, management, and supply chain in the next two to four years,” Chaba stated.
MG Motor India currently maintains a manufacturing facility in Halol, Gujarat, which it purchased from General Motors, and it produces approximately 1.2 lakh units. With the construction of a second plant in Halol, the business hopes to raise its yearly production capacity to 3 lakh units. Furthermore, MG Motor revealed plans to introduce 4-5 new vehicles in the country, with a concentration on EVs. The company estimates that its EV portfolio will account for 65-75% of total sales in India. The corporation is also considering developing cell production and hydrogen fuel-cell technologies in the country through partnerships or third parties.
In other MG Motor India news, the business recently introduced the country’s first fully electric hatchback, the Comet EV. The MG Comet EV was priced at Rs 7.98 lakh when it was released. This is MG Motor India’s second electric vehicle, and it has become the most cheap electric vehicle on the Indian market. A 17.3 kWh battery pack powers the MG Comet EV. It takes roughly 7 hours to charge from 0 to 100% using a standard household plug. MG includes a 3.3 kW charger with the vehicle.
The MG Comet EV does not have a fast-charging system. According to official calculations, it has a range of 230 kilometres. The electric motor has a maximum power output of 42 PS and a maximum torque output of 110 Nm.